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Cedar Rapids Gazette: Wednesday, November 20, 1974 - Page 2

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   Cedar Rapids Gazette (Newspaper) - November 20, 1974, Cedar Rapids, Iowa                                 Weather-  Clear and cold tonight with lows in the low 20s. Partly cloudy Thursday with highs in upper 40s.  ‘Mkt  VOLUME 92 — NUMBER 315  CITY  FINAL  IS CENTS  CEDAR RAPIDS, IOWA, WEDNESDAY, NOVEMBER 20, 1974  ASSOCIATED PRESS, UPI, NEW YORK TIMES  DIE  Mitchell's Refusal of Blame Told  Chrysler Cuts To Idle 64,200 in December  DETROIT (AP) — The|to cave in,” said one unicn of-,  j Chrysler Corp. has announced ficial.  I thousands of additional layoffs,! Facing the prospect of at least,  (raising to 64,200 the number ofi^®»®®® Three employes out  its employes scheduled to be off  of  *“ rk in  the preChristmas WASHINGTON (AP) — The «u • u • r, u    period,    union officers reacted  ... ,    .    -I    .    their jobs in December.    nuirkiv    mn anoriiv in tho  Watergate cover-up trial jury    ,    quickly    ana angrily to the  Wednesday heard another  Clir - vslcr sa,d  Tuesday that it J Chrysler announcement.  chapter in a continuing saga:  was  laying off 35.500 workers United Auto Workers Vice-  How John Mitchell refused to temporarily and 3,400 indefi- president Doug Fraser accused  take the blame for Watergate nitcly, closing all but one of its Chrysler of “sloppy manage-  despite presidential pressure six U.S. car plants and making ment” or “manipulation” and  that he do so.    “extreme cutbacks” at 42 man-  sa *d the layoffs were the most  The jurors were transported ufacturing plants from the day seiious ever at Chrysler in  back in time again through before I hanksgiving until Jan. for ms of one fell swoop.  reels of tape, to April 14. 1973, The firm said the action is He called for the resignations  when John Ehrlichman reported  aimed at  cutting its inventory of of Chrysler Chairman Lynn  how' Mitchell received the Rich-  uns °ld cars.    Townsend and President John  ard Nixon suggestion that he ac- The firm is the nation’s sev- Riccardo, blaming them for  copt the Watergate heat.    , enth largest with a total blue-  “He lobbed mudballs at the collar work force of 105,000.  White House at every opportune 22,300 workers currently on  ty,” Ehrlichman is heard telling t indefinite layoff, the total effect  Nixon after his unsuccessful ef-  -  fort.    (Photo on Picture Page)  “Innocent”  Chryslers buildup of 380,000 unsold new cars — enough to supply dealers for four months.  “Workers Pay”  “When they make mistakes, they don’t pay for them, the . .    .    workers    pay    for    them,” Fraser  “He is an innocent man in his    „ fM , e  J 1 '? .^ nr 'j'. I  in      said ’ P° illtin 8  oul that ,he firm   heart and in his mind and he ’ l . ...     f     produced    62.000    more cars than  does not intend to move off that' rh l  ,  f   (    0     it sold in September and deposition.” Ehrlichman reported     Chr > Sler  *° rk forCe ’    tober.  “He said if I’m indicted it is 1     Further Layoffs    j Three Detroit assembly plants  L'ill Ko Ha urn nlnnrr u/ith ftstA*  about  Chrysler work force.  Further Layoffs  going to be very hard . . . but Ii Some 95.000 auto workers are will be down along with two! can’t let    people get away with    on layoffs this week, including    others, leaving just the St. Louis  this kind    of thing    ... I am just    37,000 indefinitely    at General    facility in operation,  going to    have to    defend myself    Motors, 10,425 at    Ford, andi Although the firm will    not  every way I can.”    16.000 at Chrysler.    The remain-    close its 42 supply plants,    pro  After hearing the report, 31,575 are on temporary Nixon commented: “One, one layoff.  footnote is, uh, that, uh, his, uh, The total Big Three work throwing it off on the White force is 650.000, down from House isn’t going to help him 750.000 just 13 months ago, and one damn bit.”    I there are persistent reports that  But he understood the impact further layoffs ate imminent. of Mitchell’s position.    i“"  looks like ,hc roof is aboul   ’’The fault is the White    ''    , _  House’s rather than his . .    ^,^3^ Pf-ggjJ  Nixon said. “It’s bad if he gets up there and says that, it’s a hell of a problem for us.”  “Videotape Objection”  Before the jurors were  brought in Wednesday, H. R NEW YORK (Apt — A busi- P an Y  and  g° vernment  Haldeman’s lawyer asked again  neM man kj(Jnaped from  ^ payment benefits, that the jury not be permitted to ^ , s|and home a( gunpoint a | Normally, idled workers get see a 10-minute videotape ot ________ ,  ,____ qc;    n^rppnt    nf    takp    home    oav.  filter S75MC9 Ransom Is Paid  98 Survive; Fear Two Yanks Dead  NAIROBI, Kenya (AP) — A .German jumbo jetliner crashed and burned Wednesday on take off from Nairobi airport, killing 59 persons. Lufthansa said 98 persons survived the first fatal crash of a Boeing 747, three-fourths of them virtually uninjured.  The West German airline’s IN a i r o b i manager, Hclmuth Wolff, said 73 persons from the  c  flight were totally unharmed land were expected to fly on to j Johannesburg on Thursday after spending a night at a | Nairobi hotel.  Critical Condition  The other survivors were admitted to hospitals, three in critical condition, he said.  He said most of the 139 passengers were German. He said the survivors included 67 Germans, 12 Americans, IO Britons, i four Canadians, two South Africans. two Norwegians and one I Belgian.  I Police said all but two of the Americans, an unidentified man I and his wife, were accounted for among the survivors, j Twelve of the Americans were reported to be in a touring group from the Los Angeles  President tance of Secretary of State His- food problems added “a new what one would have hoped for” area. An English woman tourist Ford and Prime Minister Ka-;singer’s proposal last week that  an d positive dimension” to and was as constructive and said the Americans were in the  kuci Tanaka agreed Wednesday Japan, the U. S., Canada and  _ positive a summit conference as center of the big plane and that  on the need to enhance coopera- Western Europe forge a com-  /p ,     p .     p     .    any Kissinger has been involved she thought three of them were  tior» among (he oil-consuming mon front before dealing withj in since 1969.    killed.   a  u S  h e f 1 TTAW greC T 1ent ! natioris whi,e seekin 8  t0 main ‘  the  °*l-exporting countries on nth the LAW on  Tu es-I ta j n  harmony in their relations price and supply questions.. ‘  with the oil-exporting countries ! However, Kissinger told  duction cutbacks there were described as “extreme” with many layoffs.  The firm said it will trim 50.000 cars from a production schedule of 300.000.  Fraser said Chrysler will save $19 million in holiday pay by laying off the workers.  Under reached with day, workers with more than a year seniority will receive IOO percent of their regular take home pay during the eight-day holiday period, including com-  DINNER DISCUSSION — President Ford and Emperor Hirohito chat, by means of an interpreter, during the reciprocal dinner hosted by Ford Wednesday.  Ford, Tanaka Agree on Oil Stand  TOKYO (AP)  .    .    .    .____  .    I    “I    think    the    President    feels    Lufthansa's    Frankfurt office  American and Japanese han-j cx , reme | y good about it  *,  Kjc .  sajd gf  j egst Amcrjcans   _    I    J    a    riling of problems that affect singer said.    were    among the survivors. They  In a joint communique issued  news  conference he felt Japa- their national security.     Trade    Armg    wore     identified    as Susan Mary  after two days of talks between  nese  officials disposed a gen- Talking of a new era of part- The communique also de-    —a -  Ford and top Japanese officials, 'eral sympathy to the approach nership between Japan and the  c i arcd  that j a p an anc j the U. S.    (Photos on Picture Page)  the President and the prime his proposal. He added that U.S., Kissinger said F ord’s j “remain committed to their inminister said;    j the     discussions    of    both    oil    and    visit “achieved the optimum of, ternationa ,  p , edges t0 avold   “The United States and Japan! . -..... ;actions which adversely affect,  recognize the need for a more  , week ago" has been” released 95 percent of take home    MHOae    RofcAerS    Hit  Haldeman’s testimony belore  af , er paV ment of $750,000 ran- Fraser said Chrysler has agreed    of    wor    d    re-    3     5    1    1,1   the senateWatergate committer ^  (he FB ,  rcpor(cd Wcdnc8 . to donate $1 million to make up ^     1    s     “     impor .| T     .a     r  .  last year because it would be a .    for the lost five percent in the    ,    '     s    1     h/t    r\rr\    VTA v/ve  ’■spectacle on one count of Mr.  08  ’    _    .    .    .     ho | idav peri od.    I ,an “  of  stable supplies of en- / WO M Of© /Of 6S  u a u.man'c heina sineled out Jack Teich, 34, of Kings Point,;    . ....ergy at leasonable prices, they'  fAr nhntnyranhir DurDOses.” co-owner of Acme Steel Parti- Chrysler said production w ll■  wd j  see ^  in a manner  suitable  tion Co., was released near Ken- resume at a slower pace at the ^ j bc j r econom j es  to expand    .. ,  T  .    .    ,    . nt >    lerocerv stnro  The government wants to international ^irtvirt Into six U.S. car plants in January.| orwl    nnflrm ,    coniine    |    nutted    Tuesday    by    teenagers, s . ■     2 (X)7    First    ^ orts     ^     a ^     countr i c ^'     to     pursue    I    carrying    350    passengers,    is    con-  . told police one of the carrying a sawed-off  rtn * jj*    wwi     rJirnan)  i in    ar rI    1 16  shotgun when they cn-  Teich, the father of two. was ab- Plunged 34 percent to a 13 veal    Concession    *    I    The    pair    had    also    attempted ;tered the store   ducted by two men as he drove  Industrywide,  second robbery com-tutes before they went to the  Seaholm of San Pedro, Calif., and Thomas Scott, whose home  the economies of other nations, j town was not immediately Sidestepping the touchy politi- known. cal question here of U. S. navy:    pj    Crash  ships visiting Japanese ports   1  without unloading their nuclear This was the first crash of one weanons, the communique said: °f    giant .Boeing    747 jets  “The U. S. and Japan recog- since they went into service five nize the need for dedicated ef- years ago. The 747 capable of  show evidence  into his driveway Nov. 12.  “There is some indication of political motivation,” the spokesman said. He gave no other details.  Beginning the day after the  0{bl ,  n e w  Examination of Nixon Monday  WASHINGTON (AP) - A court-appointed medical team  will examine former President* kidnaping. Mrs. Teich, 30, re-     in pr j vate m  Washington    with    producing    nations.    Both    coun-  Nixon at his home in San Cle-    ceived three telephone calls,     the  Michigan congressional    del-    tries    agree that    lurther    interna-  mente. Calif., on Monday to de- one letter and tape recordings,  cgation and urge( i  a  freeze on tarnal cooperative efforts termine whether he is well    which included Teieh s voice,     a jj  new sa f e ty and  enough to testify in the Water-    demanding the $750,000 ransom, | standards. The Chrysler execu  vvnv\.)kTivii       g         •    Iv    I    v    VI    LI    Iv    SIDI    I,  model, The communique said (hath  8   sales in October were down 27 both countries “attach great im-| percent from the year before and early November sales fell  38 percent.    tries, and they intend, in eon-  Meanwhile, Riccardo and cert with other nations, to P ur Tp^'i‘ me(1 " a  ^ g  her company executives met sue harmonious relations with ,    .  additional arms limitation and sidered by pilots to be the safest arms reduction measures, in passenger plane in the world, particular controls over nuclear Cause of the crash was not armaments...”    known.    •  Nu*  ad  the U. S.-Japanesej “There is no suspicion of sab-from the drug store after Schil-1 ag r e«ments were shadowed by otage,” a Lufthansa spokesman  moment, we only  ! store  years at * 8:45  her and demanded money. Mrs. Nelson responded  tives  re Dor ta nee toe n hanc ing coODera-!  Klt?ar *«r Nelson. 1556 B avenue  lig toid thcm ho did not havc  predictions rom within Tana- said. “At the r  t^n ^morni ^on^undne coun-i^ E ’  to,d licc two g,rIs about  keys to the safe and did not kas own ruling Liberal Demo-i have  mysteries JI,tion among consuming court | u t() 14 years oId  entered the  have any money     crat.c party that the prime min-  The pi|ot was quotcd by lhc   p.m. Tuesday.!    police said also the two    girls     lster     be    forced to    resign    j^ enyan  News Agency    as say-  -barreled gun at     may bave  committed the    rob-    ' er ^  s ^, or    a    r    0     ing: “I was taking off normally  bery at 2 a m. Tuesday at the  fa !l evV j . ..    .    .    .    J. . . the plane broke up and was    ________  r   by    Donutland store, 4045 First    ave-; Ford flies    to    Ute  ancien lu^P e 'J    suddenly going down.    I don’t  throwing a price labeler at the    hug SE, where $583 was taken     r,al  capital    or    Kyot° ori    i nurs-     know wbal  ^ppened “  and air pollution \ necessary lo forestall an coo- Pf ir - « n .°  of  ' he  8 irls ,h f"    two    employes    Seo u rLTh Ko^eaFrday" for Witnesses said the plane ap-   e  Chrysler execu- nomic and financial crisis.” .««•    mon    v'    nln l    ta    JZ    ta    Partly lost  came lo the meeting The pledge of cooperative ac- ?  J '  d , wanled lhe money Donutland robbery « a s ftrst be IU v    ®     r     Mrs Nelson said shi‘ then lu>vod tn he* a vniincr hnv hill  Soviet leader Leonid Brezhnev.  TV Speech  are  officials, Ford ad-  gate cover-up trial, it was an- the FBI said.  flounced Wednesday.    j    It    was    paid by the family, the equipped with statistics fore-;tion appeared to represent -1 reac ( led   Nixon’s lawyer. Herbert Mill-agency added. The FBI an-     cas ti ng     higher new    car prices as    concession by the Japanese.  crabbed   cr, told U. S. District Judge pounced Teich's release at an     a  result    of the new    federal regu.    who are 99 percent    dependent  John Sirica that the doctors unusual 2 a m. news conference    lations.     on  imported oil and    in the past  wanted guidance on how much which was the first report of the    They    called for    government    seemed ready to go    it alone in  background about Nixon's  week .oi d  kidnaping. Teich was action  t0 he)p  j mpro ve auto dealing with the Arab nations. The two robbers also tried to night e incidents were described japanese health would be made public. at FBI headquarters but did not    --    -    I But the communique stopped'hold up Schillig Pharmacy, 421) as white, five feet tall, thinly  “I don’t want . . . months or attend the news conference.    (Continued:    Page    3,    Col.    8.) far short of Japanese accej>|Center Point road NE, five min- j built and having blonde hair. (Continued: Page 3, Col. 7.)  years of records turned over to the public because I don t think that is necessary.” Miller told Sirica at a session of the trial with the jury absent.  Sirica told Miller that “as I understand it. it will only he necessary for the doctors ... to state their conclusions for the record whether or not we can have a deposition taken or what have you. You don’t have to spread it (Nixon s medical history) on the public record.  v    .•!     T .    un     U,,| K ti nu waiucu tnt- muiitj.    uuiiuuunu ruuuerv was iirsi oe-     dc,V S  ^ a ;  ULalwrs, Nelson said she then , ttvtd  lo ta a young boy, but;rf*‘ th   into the cash register police now say the victims may some cash and    have mistaken the younger of  handed it to the girls.    the two robbers for a boy.    ^f ter     a final    morning meeting I breaking the plane into a dozen  *    *    *    Both    su'spvet^    in    Tu(‘s(la\     w j(h    Tanaka    and    other    senior    pie*  power shortly after takeoff on the final leg of a Frankfurt t o Johannesburg, South Africa, flight and its tail section struck an embankment,  Meat Markup Debate: Figures Don’t Lie, but  Today's Index  Comics Crossword Daily Record Deaths  Editorial Features  Farm  Financial  Marion  Society  Sports  State  Television Want Ads  71)  71)    SA  3A  6A  9B  Kl)  711  I HI PUB 11 Mil > 1C-3C IC  90-131)  By Associated Press  The battle over meat prices has begun again and consumers can’t be blamed for feeling confused over the claims, counterclaims and statistics about where their money is going. What docs it all mean 0   Farmers are losing money. High grain prices have forced many ranchers to sell their animals at a loss rather than buy expensive feed Supermarket profits are up over last year and the agriculture department says that for the first nine months of this year, higher mark ups by middlemen wholesalers and retailers -- have accounted for 84 percent of the increase in the annual cost of a mar-ketbasket of food.  The government has begun a series of hearings to inves  tigate profit margins. Anti consumers are paying just as much for beef as they were at the start of the April, 1973, one-week meat boycott.  The supermarkets traditionally have been reluctant to break down their expenses and profits, department by department. They say it’s virtually impossible to allocate things like utility costs to one department or another. They also say they don’t want to let competitors know too much about how they operate.  At the same time, however, they claim their meat departments traditionally return a low profit. They argue that labor costs are high —■ a butcher cutting meat gets a higher salary than a stock room boy stacking cans. One source estimated that 14 percent of the gross margin on meat goes for labor.  John Cairns, vice-president for merchandising of the Great Atlantic and Pacific Tea Co. — A&P — provided a few clues to store profits at a house subcommittee hearing Tuesday in Washington He said that gross margin for the meat department for the first nine months of 1974 was 21.89 percent, the highest since at least 1968 He said that meat department expenses were the highest since 1971 and equaled 19.09 percent of sales during the second quarter of 1974.  What does all this mean? Gross margin is the difference between what a store pays for its products and what it gets for them expressed as a percent of sales. That means, for example, that if a company pays $1 million for  the goods it needs and sells them for $1.25 million, it has a gross margin of 20 percent  Expenses cover things like labor, utilities, fuel and packaging. The difference between tho gross margin and expenses is net profit before income taxes. Cairns did not provide a figure for net profit after taxes, but supermarket spokesmen have said earlier that over-all net profits — for both food and non-food items — are a little more than 0.5 percent of sales this year, compared to a little less than 0.5 percent last year.  The supermarkets dispute I . S. department of agriculture statistics on whore the money you spend on beef is goings  The latest department, figures, for example, show that the average price of a pound of Ix’ef at the retail level in  the week ended Nov, 2 was $1,358. just about the same as in April. 1973.  The USHA says the carcass price — the amount the supermarket pays — was 93.3 cents per pound of usable beef during the week ended Nov. 2 and the farm price per pound of usable beef was 81.9 cents.  That works out to a difference of 42.5 cents between the amount the supermarket pays for the meat and the amount it sells it for.  The government claims its figures take into account the fact that it takes 2 28 pounds of live animal and 1.41 pounds of carcass to produce a pound of beef for sale. That’s why it gives tlx* price “per pound of usable meat.”  The supermarkets use a different set of figures. A spokesman for Jewell supermarkets. a Midwestern chain, said that  for the first 32 weeks of 1974. the store paid an average of 74 cents a pound for a 600-pound carcass of beef He said that carcass included 181) pounds of bone and fat  “Started Sinking’’  R S Virdee, a Lufthansa em-ploye who saw the crash, said, “The plane reached an altitude (of not more than 200 feet when it appeared to lose altitude It I started sinking and fell to the ground.  “It hit a large embankment and went plowing through the  field. The tail section came I apart and burst into flames. The  rest of the plane was totally  that the store sells to industri- I disintegrated.” a1 users for about IO cents per A survivor, 3(>-year-old Horst pound.    illackbadth    of    Cape Town, South  lf you take into account the Africa, said he was sitting in the amount the store sells for IO middle section, cents a pound, the average “The plane started to drop,” selling price of the entire car- I Haekbadth said. “It then just cass is only 92 cents per I f e || t 0  the ground. I really don’t pound even though you pay  knovv  what happened next. The more for the actual meat, the  nt , xl  thing I knew I was lying in Jewell spokesman argued, the grass rn the field.”  That works out to a difference    —    -  of about 18 cents, instead of 42 5 cents.  The supermarkets also complain that government analysts don’t take into account special sales on meat and they say most people do purchase sale items, thus cutting their budget.  Todays Chuckle  Some foreign countries are considering placing a tax on American tourists — possibly another way of trying to make them lee! at home copyn^>»   

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